Tax

Provision, maintenance, and operations of the entire withholding tax solution for England, Austria, and Germany.

Challenge

Due to the provisional guidelines of the federal government for the settlement of withholding tax, a suitable vision and conception needed to be developed, and the appropriate architecture determined. Accordingly, the logic of the tax law and the calculations needed to be recorded and a working solution specified very quickly. The core of the challenge was that all tax-relevant customer transactions had to be accounted for, for tax purposes, at the same time or in the near future. As a result, the system needed to be tightly linked to the bank’s accounting systems.

Solution

In order to find a solution, we set up a core team to work on a vision based on the federal government’s provisional guidelines. The vision took into account the complex architecture of the destination infrastructure, but also had to consider the federal government’s zero-error tolerance. Withholding tax gave the bank the task of calculating and collecting taxes.

The solution realized was created in cooperation with a third-party company. The software was implemented independently of the customer and consisted of integrative mainframe and decentralized (Java) components. In addition to a close integration with the core banking system, the solution was integrated into the client advisor work platform and attached to the existing accounting system and the output solution. The solution was put into productive service on time for England and Austria on January 1, 2013, after approximately one year of development. In addition to the calculation and preparation of tax statements and certificates, the solution also booked tax-exempt accounts on the customer account side and credited them to the Federal Payment Agency.

The solution was further developed by HIS after it was put into operation and maintained until it was discontinued in 2018.

Our contribution

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• Preparation of the withholding tax product vision based on the provisional guidelines
• Business analysis on the basis of the guidelines for withholding tax
• Realization of integrative software components with IBM z/OS mainframe
• Realization of the calculation component/front end with Java
• Conception and implementation of the Oracle database
• Design and implementation of customer withholding tax certificates and reports
• Conception and creation of a booking module (money side)